The Stop-Market order has an extra trailing option that will follow the price and move your open order accordingly. This option is handy in situations when you want to move your open stop-market order if the price is moved by a certain percentage. It will allow you to set the stop-market order and leave the automation to do the rest with no need of moving your order manually every day.
This feature can be enabled in the trading widget during the order placement process, please toggle "Trailing" option in the settings as shown below.
After, when the trailing option is enabled, we need to enter the price step percentage (%) to define, at what distance from the current price trailing should move the order.
Control the price step when trailing moves the order
The trailing will move the order when the price changes by a set percentage in the price step. You can set up the price step as a minimum of 0.2%. Here is a step-by-step example of how this feature will work in real trading:
BTC price is 45k, you want to place a Stop order to buy the coin at 47k with a price step of 5%.
As soon as the price drops by 5% i.e. to 42.75k, your Stop order will be moved to 44.65k (by 5%).
If the price continues to go down, the order will be moved when the price deviation will be 5% again.
As you can see, the trailing triggers every 5% and move the open order by 5% down or up from the previous position.
Tip: If you do not want to miss a single move, then you can set it up to a minimum of 0.2% and this setting will increase the frequency when the trailing should move the order.
Situations when Trailing can be used
There are two trading situations when you can consider using the trailing for your Stop-Market order: Buy the Dip and Sell the Tip. Both provide an advantage when to open and close the trade.
Buy the Dip
Adding trailing to your stop-market buy order can give you an advantage of a better entry price. Trailing will follow the price down and move the open order until the price reverse and hits it. This way it is possible to enter the trade at the best price possible which will provide better results in comparison to an earlier uncertain entry.
Sell the Tip
Another possible use for the trailing is adding it to your stop-market sell order which will exit the trade at the best possible price by following the price upwards. This feature is also known as moving trailing stop. In this case, the trailing will follow the price up to and move the open order until the price reverse and hits it. It will allow you to sell your coins at the top and eliminate the necessity of moving your stop orders manually.